Senate committee hears hours of public comment on bill to reclassify apartments for property tax

The Senate Executive Committee on the morning of the hearing heard extended public comment on Senate Bill 350, which would add a distinct multifamily tax class and set a multiplier of 1.2 times the residential rate for apartments. Chair Senator Sekola opened the bill discussion and committee members invited comments from a long lineup of in‑person and virtual witnesses.

Proponents told the committee the bill remedies an unfair result from the recent reassessment that classified many apartment buildings as commercial. "At its core, Senate Bill 350 is about fairness," said Brian Murphy of Grow Delaware, urging the committee to recognize apartments as housing while keeping the new rate above the single‑family residential rate. Deborah Burgos of the Delaware Apartment Association said the change "creates a transparent statewide framework" and preserves a 1.2 multiplier that still treats apartments differently from single‑family homes.

Opponents, including county and school finance officials, said the bill would trigger substantial local revenue shifts and operational disruption. "We respectfully request that Senate Bill 350 be tabled," said David Del Grande, chief financial officer for New Castle County, calling the measure "a complex structural overhaul" that would require counties and municipalities to reset tax rates, revalue properties and potentially reinspect thousands of parcels. Lincoln Willis, representing the Delaware Association of Counties and the Delaware League of Local Governments, said all three counties submitted in‑depth letters of opposition.

Speakers raised practical and equity concerns on both sides. Developers and affordable‑housing advocates warned the commercial classification has depressed investment in older urban properties; Robert Snowberger, principal of 9th Street Development Company (virtual), said investors told him "they're not investing in Delaware any longer" after reassessments that treated small apartment buildings like large corporations. Housing‑provider representatives said the bill strikes a compromise to avoid immediate rent spikes while restoring the residential character of many units.

Committee members probed whether the measure would be enabling (local adoption) or mandatory and weighed whether to press ahead quickly or defer some technical work to working groups. Senator Hocker worried the bill may not be needed in Kent and Sussex counties; Senator Cruz urged the committee to surface the details that protect renters and school districts; Senator Brian Townsend emphasized hearing from the public.

The committee did not record a final vote on SB350 at the hearing. Chair Sekola closed in‑person testimony and invited written comments; staff indicated written testimony filed by the end of the next day would be attached to the record. The bill remains pending with the Senate Executive Committee for further consideration.